Choosing the right ETF – ETFs simplified | iShares – BlackRock (2024)

Sources

1 Global Business Intelligence, BlackRock, as of 31 May 2021

220 mins is an indicative time and investors should note that volatility will vary throughout the trading day.

3 BlackRock, Morningstar. Comparison is between the average Annual Report Net Expense Ratio 2020 for active open-end mutual funds (1.42%) available in Singapore and average Total Expense Ratio of all ETFs (0.56%) listed in Singapore as of 8/31/2021.

4The value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

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MKTGH1023A/S-3173713

Choosing the right ETF – ETFs simplified | iShares – BlackRock (2024)

FAQs

How do I choose the right ETF to invest in? ›

Before purchasing an ETF there are five factors to take into account 1) performance of the ETF 2) the underlying index of the ETF 3) the ETF's structure 4) when and how to trade the ETF and 5) the total cost of the ETF.

Are BlackRock ETFs good? ›

These top-rated funds make excellent buy-and-hold investments for the long term in 2023 and beyond. With more than $9 trillion in assets under management, BlackRock is the largest asset manager in the world. Passive strategies make up about two thirds of those assets.

Does Dave Ramsey recommend ETF? ›

But to be clear, Ramsey's all in favor of using ETFs when used properly. For investors who can use ETFs as part of a long-term, buy-and-hold investment program, rather than as trading vehicles, Ramsey has nothing bad to say about them.

How many ETFs should I own as a beginner? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

Is spy better than voo? ›

Over the long run, they do compound—those fee differences—and investors have been putting a lot more money into VOO versus SPY. That is the reason why we view VOO slightly better than SPY. And that is just the basic approach, which is the lower the investor can pay, the better the investment is.

Is it smart to only invest in ETFs? ›

ETFs make a great pick for many investors who are starting out as well as for those who simply don't want to do all the legwork required to own individual stocks. Though it's possible to find the big winners among individual stocks, you have strong odds of doing well consistently with ETFs.

Should I use BlackRock or Vanguard? ›

BlackRock offers a more diverse range of investment strategies, including both passive and active management, whereas Vanguard predominantly emphasizes its passive investment approach.

Why is BlackRock better than Vanguard? ›

Vanguard focuses more on passive options, and BlackRock offers a number of strategies. Vanguard and BlackRock both have unique and very different fee structures. Consider the fee structures, services, and investment options to make the best choice. A financial advisor can help you decide which option is best.

What is BlackRock's biggest ETF? ›

The largest BlackRock ETF is the iShares Core S&P 500 ETF (IVV).

Can you retire a millionaire with ETFs alone? ›

Investing in the stock market is one of the most effective ways to generate long-term wealth, and you don't need to be an experienced investor to make a lot of money. In fact, it's possible to retire a millionaire with next to no effort through exchange-traded funds (ETFs).

What is the downside of owning an ETF? ›

The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.

Is 10 ETFs too much? ›

Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.

Is it OK to just buy one ETF? ›

The one time it's okay to choose a single investment

You wouldn't ever want to load up your portfolio with a single stock. But if you're buying S&P 500 ETFs, this is the one scenario where you might get away with only owning a single investment. That's because your investment gives you access to the broad stock market.

How long should you hold an ETF? ›

Similarly, you should consider holding those ETFs with gains past their first anniversary to take advantage of the lower long-term capital gains tax rates. ETFs that invest in currencies, metals, and futures do not follow the general tax rules.

Should a beginner invest in ETFs? ›

Exchange-traded funds (ETFs) are ideal for beginning investors due to their many benefits, which include low expense ratios, instant diversification, and a multitude of investment choices. Unlike some mutual funds, they also tend to have low investing thresholds, so you don't have to be ultra-rich to get started.

How to judge ETFs? ›

The two ways to see how closely an ETF matches the index performance are 'tracking error' and 'tracking difference'. Tracking difference addresses how closely the ETF tracks the index returns, while tracking error reflects how consistent over time the tracking quality is.

What ETFs should be in your portfolio? ›

10 ETFs to Build a Diversified Portfolio
FundExpense Ratio
iShares Core Moderate Allocation ETF (ticker: AOM)0.15%
iShares MSCI World ETF (URTH)0.24%
Vanguard Total World Bond ETF (BNDW)0.05%
iShares National Muni Bond ETF (MUB)0.05%
6 more rows
May 2, 2024

Are ETFs good for first time investors? ›

They can be especially valuable to beginning investors. That's because they won't require the time, effort, and experience needed to research individual stocks. The cost to own an ETF may be lower than the cost to buy a diversified selection of individual stocks, too.

References

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